Michelmersh Brick Share Discussion Threads

[m12rtn] 20/4/2023 07:28

I thought they invested money in buying a business last year producing brick slips etc? Doesn't that mean they are investing the cash they generate? And also adding shareholder value by buying back shares? Don't forget this is only a small AIM company really valued at less than £90m. And has been valued as high as £170m in the past.

[jw330] 18/4/2023 23:03

I'm no expert in bricks but I do have concern in regards to their business model,

by only focusing on high end products and maintaining good cash generation are they going to survive competitors who are expanding aggressively and eventually could produce similar standard bricks at a lower price point due to economies of scale?

It maybe good for management to focus on cash generation but if that cash isn't redeployed into the business then surely it is only a matter of time before someone is going to come in and outcompete them? I could be very wrong here.

[barnesian] 01/4/2023 09:32

They've also restarted their share buy backs at around 93-95p guarding the downside so it's all upside.

[tole] 01/4/2023 07:27

https://masterinvestor.co.uk/equities/small-cap-catch-up-diagnostics-bricks-and-switches/Michelmersh Brick Holdings (LON:MBH) – Strong 2022 Results And A Resilient OutlookAnalyst James Wood at Canaccord Genuity Capital Markets reiterates his Buy rating on the brick manufacturing group's shares after last Wednesday's results announcement.His current year and prospective year estimates remain the same, except that he has upgraded his dividend projections to 4.3p for 2023 and 4.5p for 2024.However, he has now inserted his figures for the 2025 trading year, going for £88.4m sales, £14.1m profits, 11.2p earnings and a 4.7p per share dividend.He maintains his discounted cash flow valuation on the group's shares, giving a price objective of 180p.Over at Berenberg, their analyst Robert Chantrey has a 170p price objective on the shares.He believes that the £89m capitalised group's current rating is very cheap considering its long track record of delivery, its near-term resilience versus its peers and the strength of its balance sheet.Last night they closed at 93.5p, at which level I consider that they still offer excellent value.

[alter ego] 31/3/2023 12:09

thx for passing that on, much appreciated

[barnesian] 31/3/2023 10:56

I've just been at the retail investor presentation this morning.

Overall the management is very professional and competent. I was reassured by their knowledge and approach. The numbers also look excellent, particularly the cash generation.

On pricing, the company achieved an 18% increase last year in two tranches with no push back, and a further 10-15% this January. Their three main competitors put through price increases of 45, 44 and 42% last year, the last increase being in October, with some push back, but are marketing zero increase for this year. The MM price premium has reduced from around 30% to 20%. They have basically maintained margins and gained goodwill from customers.

On exports, they export a bit to Europe - mainly high end specific contracts - but are up against high quality competitors, so exporting is not an important part of their strategy. 25% of UK demand is met by imports - a lot from Belgium and Holland.

[tole] 30/3/2023 08:46

https://www.thearmchairtrader.com/michelmersh-brick-holdings-share-price-analysis/

[dozey3] 29/3/2023 13:25

The bulk and weight/value ratio of bricks makes international trade difficult. Nevertheless this seems to me to be an almost completely ignored opportunity by MBH, with derisory international revenues. Surely top architects would wish to use top of the range materials, especially where money is no object.

[m12rtn] 29/3/2023 12:34

I think you will find that bricks and blocks are in demand all over the world. Especially if you live in a war zone currently. So Imports may be hard to get as well in the future! Good stocks to be in are building materials.

[c3479z1] 29/3/2023 12:30

is there much competition in bricks? few providers in the UK,
seems an oligopoly to me though if prices go too high then imports come in?

[barnesian] 29/3/2023 08:12

Really excellent results with dividend up 15%.

[jeanesy] 29/3/2023 07:33

Results look very good to me and outlook positive too despite inflationary and interest rate pressure.

[dozey3] 27/3/2023 20:30

Whilst we await the results jeanesy, why not make some pointless and irritating posts?
Whoops - too late!

[jeanesy] 27/3/2023 19:43

I hope the continued selling is not the sign of a negative update here . Fingers crossed.

[jeanesy] 26/3/2023 18:39

Results this week. Hoping for some positive news despite the raise in interest rates

[jeanesy] 01/3/2023 15:25

Inching up to that 100p level again. Seeems to be the resistance point though.

[jeanesy] 13/2/2023 11:10

Yes i would agree CWA1 but the buy backs show that the company thinks the shares are undervalued. Good to see the brickability is doing well though anf that certainly helps with the sentiment here.

[cwa1] 13/2/2023 10:01

Possibly something to do with this in terms of read across...

[jeanesy] 13/2/2023 09:20

good to see that those buy backs are keeping things positive here shareprice wise.

[barnesian] 31/1/2023 09:16

I'm following the buy-backs as they indicate a support level.
The latest two were for 50,000 shares at 91.5p.
The previous one was for 60,000 shares at 96p. So 110,000 in total.

However the share buy back program is for up to £3m worth of shares by end February so only four more weeks to go.

I think it is worth monitoring.

[dozey3] 31/1/2023 08:42

meanest, chill. They will be buying back shares for some time. No need to report each one as if it’s news.

[jeanesy] 31/1/2023 08:03

a couple of buy backs reported last two days,

[jeanesy] 26/1/2023 07:49

trades shown so far didn't imply that

[makinbuks] 25/1/2023 17:49

Perhaps implies a seller in the background